new york real estate for salespersons, 5th e
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New York Real Estate for Salespersons, 5th e. By Marcia Darvin Spada Cengage Learning. Chapter 12. The Valuation Process. Chapter 12 Key Terms. Appraisal Assessed value Comparative market analysis Cost/direct cost/indirect cost Cost approach Depreciation Evaluation. - PowerPoint PPT PresentationTRANSCRIPT
© 2013 All rights reserved. Chapter 12 Valuation Process and Pricing Properties 1
New York Real Estate for Salespersons, 5th e
By Marcia Darvin SpadaCengage Learning
© 2013 All rights reserved. Chapter 12 Valuation Process and Pricing Properties 2
Chapter 12
The Valuation Process
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Chapter 12 Key Terms
Appraisal
Assessed value
Comparative market
analysis
Cost/direct cost/indirect
cost
Cost approach
Depreciation
Evaluation
Functional obsolescence
Income approach
Insured value
Investment value
Market value
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Chapter 12 Key Terms (continued)
Mortgage valuePlottagePrice Sales comparison
approachValuationValue in use
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Types of Value$ Market
$ Investment
$ Insurance
$ Value in use
$ Assessed
$ Mortgage
Most appraisals
estimate market
value
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Evaluation
Feasibilitystudies
Feasibilitystudies
Landutilization
studies
Landutilization
studies
Highest andBest usestudies
Highest andBest usestudies
Supply-and-demandstudies
Supply-and-demandstudies
Marketabilitystudies
Marketabilitystudies
EvaluationEvaluation
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Market Value, Price and Cost
PricePurchaser pays;Buyer accepts
PricePurchaser pays;Buyer accepts
CostDollar expenditure
for property
CostDollar expenditure
for property
Market valueIdeal value for
property
Market valueIdeal value for
property
Direct costLabor and materials
Direct costLabor and materials
Indirect costsSupport items for
project
Indirect costsSupport items for
project
Comparison
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8
Comparative Market Analysis(CMA)
Analysis of the competition that a property will face upon sale attempts
Properties currently on the market
Recently sold properties
Expired listings
Withdrawn listings
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Residential Market Analysis
MarketPosition
BuyerAppeal
Expired properties
Competing properties
Marketvalue range
Terms
Assets/drawbacks
ResidentialMarket
Analysis
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Appraisal Approaches to ValueAppraisal
Unbiased
estimate of
value as of a
certain date
Sales comparison
Cost
Income
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Appraisal ReportingNarrative Report
Uniform ResidentialAppraisal
Report (URAR)
Reconciliation